EUROPEAN COMMISSION
Brussels, 29.6.2017
COM(2017) 345 final
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2016
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2016
1.General
The ''Pericles 2020'' programme (hereafter ''the Programme") is an exchange, assistance and training programme for the protection of the euro against counterfeiting. It replaces the Pericles programme that was established in 2001 and ran during the period 2002-2013. The Programme was established by Regulation (EU) No 331/2014 of the European Parliament and of the Council of 11 March 2014 1 . Its application was extended to the non-participating Member States by Council Regulation (EU) 2015/768 of 11 May 2015 2 . Regulation (EU) No 331/2014 establishes the duration of the Programme until 31 December 2020. Article 13(3) of the Regulation requires the Commission to provide annual information on the results of the Programme to the European Parliament and to the Council. This third Annual Report responds to that requirement in relation to the year 2016.
2.Implementation of the Programme and results of committed actions in 2016
The annual budget for the implementation of the Programme for the year 2016 was set at EUR 1 038 500 and was financed from the budget line 01. 020400 of the general budget of the European Union for 2016. A total of EUR 1 029 353.87 was committed in 2016. The Programme is implemented through co-financed actions (grants) originating from the competent authorities of the Member States and through ''Commission actions'', organised directly by the Commission.
The implementation of the Programme reflected the commitment of Member States and the Commission to protect the euro against counterfeiting. Discussions of the multi-annual strategy at the meetings of the Euro Counterfeiting Experts Group (ECEG) made it possible to commit 99.12% of the overall budget in 2016. In order to make full and effective use of the available commitment credits, EUR 45 083.16 was transferred from grants to Commission actions. In 2016, the Programme funded 13 projects in total 3 . Altogether, 9 grants were succesfully awarded from applications originating from the competent authorities of the Member States. This is the same number as 2015. Furthermore, 4 Commission actions were funded, compared to 3 Commission actions in the previous year. 4 actions were implemented in 2016, while 9 actions are being/will be implemented in 2017 and later.
Chart I and Chart II: Number of actions per Member State and Type of action financed (actions committed to in 2016, see annex I) 4
Applicants to the Programme in 2016 represent four Member States, namely Italy, France, Spain and Bulgaria. To a large extent, this reflects the fact that the countries most affected by euro counterfeiting are more frequent users of Pericles funds. In addition, a Bulgarian authority is a first-time applicant to the Programme.
The actions for which commitments were made in 2016 consist of 5 seminars/conferences, 3 technical trainings, 3 staff exchanges, 1 study and 1 purchase of equipment.
The actions take place 5 both inside and outside the EU depending on the specific needs to protect the euro against counterfeiting. Since its inception, the Programme has consolidated its regional approach by implementing actions involving particularly sensitive regions of the world. Of specific focus are Latin America (2 actions organised by Spain and 1 Commission action), and South-East Europe (2 actions organised by Italy and 1 action by Bulgaria).
Charts III and IV give a breakdown of the origin and professional background of participants to the Programme:
Chart III and Chart IV: Origin of participants and Professional background of participants 6 (actions committed to in 2016, see annex I) 7
An estimated number of 528 experts participate in actions for which commitments were made in 2016 8 .
In terms of origin, participants come from 60 countries. The majority of trainees (63%) are European participants: 39% come from the euro area Member States, while non-EU countries in Europe represents 14% and Non-Euro Area Member States 10%; 26% of trainees are from Latin America, a significant increase compared to the previous year 9 and now representing the second largest group of participants. Finally, 2% come from the Middle East and North Africa and 2% from Asia.
With respect to the professional background of participants, members from police forces represent 37% of the total. That prominent presence is due to the fact that police authorities represent the front line in the fight against euro counterfeiting, and police staff includes both investigators and technicians. Nevertheless, other categories of participants account for 63% of the total, a significant increase from 47% in the previous year. Particularly, the relative participation of central banks has increased significantly (23%) 10 . Furthermore, there is a continuing high participation of members of the judiciary (11%) 11 , and a growing participation of mints (8%) 12 . Finally, the implementation of the Commission action ''euro coin authentication conference''results in a high participation of representatives from the coin processing machine (CPM) industry (8%), which affirms the private sector as a significant stakeholder in the fight against counterfeiting.
As a result, the implementation of the Programme meets the transnational and multidisciplinary dimensions of the Programme required under Regulation (EU) No 331/2014.
3.Overview of actions committed to in 2016: highlights 13
The implementation of the Programme in 2016 demonstrates a continuing positive trend towards an increasing differentiation of the professional backgrounds of participants over the years. Indeed, for the first time, police authorities do not represent the absolute majority of participants in 2016. In particular, the significant growth in the involvement of the central banks as well as the growing participation of judiciary, mints and the CPM industry in actions is noteworthy. The 2016 commitments also reflect a further diversification of Member States' competent national authorities applying for the Programme; the Bulgarian National Bank is a first-time applicant for Pericles funds. Furthermore, taking into account the 2016 priorities of the Programme 14 , the following highlights can be identified:
Regional international cooperation
The Programme has succeeded to maintain and further strengthen strong regional international cooperation in 2016:
·Three actions took/will take place in Latin America, bringing together experts from a large number of Latin American countries.
·Three actions took/will take place in South Eastern Europe, maintaining strong cooperation in this region.
Internet/darknet
Several actions committed in 2016 addressed the threat posed by the internet/darknet in the fight against counterfeiting, focussing on the effectiveness of investigation techniques and the need for a coordinated response to the threat:
·The co-funded 'Seminar: A new threat on euro counterfeiting - the Deep Web and cryptocurrencies', organised by the Italian National Central Office, will take place in Rome in April 2017.
·Furthermore, both the UCAMP 15 -organised conference 'A Community Strategy to Protect the Euro in the Mediterranean Area' as well as the BIBE 16 -organised conference 'Curso de Formación sobre Falsificación de Moneda para Expertos de Paises Iberoamericanos' treated this topic.
Study on new security features
·In 2016, the Programme has been able to co-finance the second phase of the study on 'Nano-Structured Photochromic Polymers for New Coin Security Features', as a continuation from the first phase previously financed under the 2014 budget of the Programme. Organised by Monnaie de Paris, the study aims to explore the development of new interactive materials that will enhance security features for future euro coins, thereby considerably reducing the risk of coin counterfeiting.
Classification and/or authentication of euro coins and banknotes
Several actions committed in 2016 focussed on issues related to the classification and/or authentication of euro coins and banknotes:
·A co-funded staff exchange on euro classification organised by the Bank of Spain.
·A Commission action addressing a Member State backlog in coin classification.
·A Commission action, organised in coordination with and in support of the European Technical and Scientific Centre (ETSC), providing training on the LICO database to be used by Member State CNAC's for the registration of Coin Processing Machines in conformity with Article 5(2) of Regulation (EU) No. 1210/2010 17 .
·A conference on the authentication of euro coins, which will include the participation of representatives of the coin processing machine industry. This conference, organised as a Commission action in coordination with and in support of the European Technical and Scientific Centre (ETSC) has as a specific goal to raise awareness and share the main issues of concern to all stakeholders with regard to the authentication of euro coins and handling of euro coins unfit for circulation as per Regulation (EU) No 1210/2010 18 . It will provide an overview and way forward as to the main technical developments for coin processing machines, future challenges and market evolution.
4.Implementation of actions in 2016 that were committed to under previous budgets of the Programme
2016 saw the implementation of 9 actions that were committed to under previous budgets of the Programme 19 . Of those actions, 7 originated from the competent national authorities of Member States - namely France, Spain, Germany, Croatia and Italy - while 2 actions were initiated by the Commission. The actions consisted of 5 seminars, 3 staff exchanges and a study. Particular focus areas were South-Eastern Europe, China, Latin America and the Mediterranean region.
Of particular note is the 12th Euro South East conference that was held in October 2016 in Zagreb, Croatia. This conference continued the sequence of Euro South East Conferences which have been vital in reinforcing cooperation among competent national authorities in South-East Europe, containing several hotspots regarding the possible transit and production of counterfeit euros.
5.Conclusion and way forward
The Commission constantly disseminates the results of the actions supported under the Programme to the experts of the Euro Counterfeit Experts Group (ECEG). In 2016, 3 ECEG meetings took place.
The Programme shows a high degree of consistency and complementarity with other relevant programmes and actions at Union level because it is dedicated exclusively to and focuses on preventing and fighting a specific form of organised crime, namely euro counterfeiting. This is true for OLAF's Hercule III programme 20 which protects the financial interests of the Union, and the Programme shows a high degree of complementarity with, inter alia, DG HOME's Internal Security Fund - Police 21 , which covers the prevention and combating of crime in general.
The ''Pericles 2020'' programme continues to be an important and effective tool in the fight against counterfeiting. This is underscored by the fact that the available budget for 2016 was fully committed. Furthermore, the following cases illustrate the contribution of the Programme to the protection of the euro against euro counterfeiting in 2016: in May 2016, a new regulation covering all aspects of euro-cash operations was adopted in Kosovo 22 , after its representatives had participated in several Pericles 2020 actions 23 . In addition, Pericles 2020-trained law enforcement personnel participated in the dismantling of three illegal printshops in Colombia and in the arrest of 49 persons suspected of counterfeiting the euro in Peru in 2016 24 .
The Programme forms the basis for the support of studies, maintaining and developing cooperation, and exchanging best practices among all actors involved in the fight against euro counterfeiting. Based on the results of the implementation of the Programme and the continuous analysis of emerging threats discussed in the ECEG, the priorities for 2017 are the following 25 :
·Supporting activities aimed at improving cooperation among those Member States which are particularly affected by the production or distribution of counterfeits.
·Fostering cooperation with authorities of those third countries where there is suspicion of or evidence for counterfeit euro production.
·Maintaining an efficient framework for the protection of the euro in South Eastern Europe.
·New developments: technical developments within the coin processing machines, the distribution of counterfeits and high quality components on the internet and the increasing interest in euro counterfeiting of criminals located in Third Countries.
The LIst of COin processing machines IT tool is an IT tool developed by ECFIN for managing and monitoring the "Consolidated list of coin-processing machines successfully tested or declared to conform" according to Article 5(2) of Regulation (EU) No. 1210/2010. The IT tool will support The Designated National Authority of the Member States to implement the Regulation and allows them to submit the "Detection Test Report Summary" to the ETSC.
Regulation (EU) No 513/2014 of the European Parliament and of the Council of 16 April 2014 establishing, as part of the Internal Security Fund, the instrument for financial support for police cooperation, preventing and combating crime, and crisis management and repealing Council Decision 2007/125/JHA (OJ L 150, 20.5.2014, p. 93).
The priorities of the Programme for 2017 are an essential part of the Annual Work Programme, which is annexed to Commission Decision C(2016) 8778 final of 03 January 2017 concerning the adoption of the work programme for 2017 of the Pericles 2020 programme.
EUROPEAN COMMISSION
Brussels, 29.6.2017
COM(2017) 345 final
ANNEX
Overview of actions committed to in 2016
to the
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2016
Annex I: Overview of actions committed to in 2016
|
Organiser 1 |
Activity |
Location and Date |
Commission Contribution (total amount committed in euro) |
|
Seminars |
|||
|
Italy UCAMP |
A Community Strategy to Protect the Euro in the Mediterranean Area |
Tirana, Albania 05 - 07 October 2016 |
85 276.65 |
|
Main objective of the action: raising awareness on EU legislation, strengthening cooperation on the protection of the euro in the financial sector and the exchange of know-how. |
|||
|
Spain BIBE |
Curso de Formación sobre Falsificación de Moneda para Expertos de Paises Iberoamericanos |
Buenos Aires, Argentina 29 November – 2 December 2016 |
194 336.13 |
|
Main objective of the action: Institution building (creating National Central Offices on the basis of the International Convention for the Suppression of Counterfeiting Currency, Geneva, 20 April 1929); strengthening cooperation and the exchange of know-how. |
|||
|
Bulgaria Bank of Bulgaria |
Enhancing the knowledge of Turkish Authorities of NACs and among national competent authorities |
Sofía, Bulgaria 15 - 17 March 2017 |
6 288.30 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
|
Italy UCIFM |
A new threat on euro counterfeiting - the Deep Web and cryptocurrencies |
Rome, Italy 04 – 05 April 2017 |
69 908.67 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
|
Commission ECFIN |
Workshop on the authentication of euro coins |
Brussels, Belgium 16 - 18 May 2017 |
130 000.00 |
|
Main objective of the action: increasing effectiveness in the authentication of euro coins and the classification of counterfeit euro coins. |
|||
|
Technical Trainings |
|||
|
Commission ECFIN |
Workshop/assistance to MS: Euro backlog in coins classification |
Madrid, Spain 4 - 8 July 2016 |
13 181.85 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
|
Commission ECFIN |
Hands-on training for LICO users |
Eindhoven, the Netherlands 27 - 30 March 2017 |
90 000.00 |
|
Main objective of the action: increasing effectiveness in the authentication of euro coins and the classification of counterfeit euro coins. |
|||
|
Commission ECFIN |
Tactical technical training: protecting the euro against counterfeiting |
Lima, Peru 7 - 9 november 2017 |
141 255.18 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
|
Staff Exchanges |
|||
|
Spain Bank of Spain |
Training Action/Staff Exchange: Knowledge of Classification of Counterfeit Banknotes and Coins |
Madrid, Spain 11 September – 8 October 2016 |
15 665.00 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how on the classification of counterfeit euro coins and banknotes. |
|||
|
Spain BIBE |
Staff exchange between Argentina, Colombia, Chile, Peru, Ecuador and Spain |
Buenos Aires, Bogota, Santiago, Lima, Quito, Brussels, Madrid 1 January – 31 July 2017 |
103 747.72 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how |
|||
|
Italy UCIFM |
Staff exchange between Italy, Boznia Herzegovina, China, Cyprus, Ireland, Montenegro, Spain |
Rome, Fabriano, Sarajevo, Beijing, Nicosia, Dublin and Podgorica 20 March - 30 November 2017 |
38 770.00 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
|
Studies |
|||
|
France Monnaie de Paris |
Nano-Structured Photochromic Polymers for New Coin Security Features - Study Phase 2 |
Paris, France September 2016 - October 2017 |
127 673.00 |
|
Main objective of the action: enhancing the security features of future euro coins |
|||
|
Purchase of equipment |
|||
|
Italy UCIFM |
Purchase of equipment to be used by specialised anti-counterfeiting authorities protecting the euro against counterfeiting and training to the Police of Montenegro |
Podgorica, Montenegro 20 - 23 March 2017 |
13 251.37 |
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
|||
The unabbreviated names of the organisers can be found in the list of Competent national authorities referred to in Article 2(b) of Council Regulation (EC) No 1338/2001, OJ C 264, 12.8.2015, p. 2–29
EUROPEAN COMMISSION
Brussels, 29.6.2017
COM(2017) 345 final
ANNEX
Pericles 2020 actions committed under previous budgets but implemented in 2016
to the
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
concerning the implementation and the results of the Pericles 2020 programme for the protection of the euro against counterfeiting in 2016
Annex II: Pericles 2020 actions committed under previous budgets but implemented in 2016
|
Organiser 1 |
Activity |
Location and Date |
Commission Contribution (total amount committed in euro) |
|||
|
Seminars |
||||||
|
France DCPJ-OCRFM |
Seminar: 'Coopération en matière de lutte contre la contrefaçon de l'euro avec la République Populaire de Chine ' |
Paris, France 19-20 January 2016 |
25 106 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
||||||
|
Croatia Croatian National Bank |
Seminar: '2nd Balkan Network for Euro Protection' |
Split, Croatia 21-24 March 2016 |
59 115.98 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how |
||||||
|
Italy UCIFM |
Seminar: 'Euro Counterfeiting in Europe: Analysis of the situation and possible future threats and measures to adopt' |
Rome, Italy 12-13 April 2016 |
58 480.96 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
||||||
|
Commission ECFIN |
'Pericles 12th Euro South East Conference' |
Zagreb, Croatia 17- 21 October 2016 |
197 199 |
|||
|
Main objective of the action: Institution building (creating National Central Offices on the basis of the International Convention for the Suppression of Counterfeiting Currency, Geneva, 20 April 1929); strengthening cooperation and the exchange of know-how. |
||||||
|
Germany Landes- kriminalamt Berlin |
Seminar: 'Combating Counterfeit Currency - Berlin 2016' |
Berlin, Germany 24-28 October 2016 |
22 700 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
||||||
|
Staff Exchanges |
||||||
|
Italy CCAFM |
'Staff exchange on investigative techniques: Italy, Albania, Greece, Hungary, Bulgaria, Turkey, Serbia, Croatia, China and Slovenia' |
Multiple locations 14 February – 18 June 2016 |
64 696.56 |
|||
|
Main objective of the action: Training on the detection of counterfeit euro currency, collection of evidence for judicial follow up and investigation methodologies; strengthening cooperation and the exchange of know-how. |
||||||
|
Spain BIBE |
Staff Exchange 'Argentina, Colombia, Mexico, Peru, Spain and Belgium' |
Multiple locations 1 January 2016 – 30 July 2016 |
76 709.03 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
||||||
|
Commission ECFIN |
'Pericles Staff exchange Albania - Kosovo' |
Tirana, Albania and Pristina, Kosovo 27 June - 1 July, 11-25 July 2016 |
22 494.08 |
|||
|
Main objective of the action: strengthening cooperation and the exchange of know-how. |
||||||
|
Studies |
||||||
|
France DCPJ-OCRFM Grant |
Study on Euro Currency Counterfeiting in France - Actors and Organisations |
Paris, France 16 September 2014 - 30 June 2016 |
41 371 |
|||
|
Main objective of the action: Research |
||||||
The unabbreviated names of the organisers can be found in the list of Competent national authorities referred to in Article 2(b) of Council Regulation (EC) No 1338/2001, OJ C 264, 12.8.2015, p. 2–29